No. 20.
Mr. Kasson to Mr. Evarts.

No. 129.]

Sir: The government has completed its special budget for the expenses of the Bosnian occupation, to be submitted to the “delegations” now assembled at Buda-Pesth.

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They demand as a supplementary credit for the current year, 1878, the sum of 41,720,000
For the service of the Bosnian occupation for the year 1879, they ask 33,000,000
Add the extraordinary credit for possible emergencies or the government voted just prior to the congress at Berlin 60,000,000
And it appears that the cost of the first eighteen months in which Austria occupies and administers Bosnia-Herzegovina reachesthe sum of 134,720,000
Or about $67,000,000

The estimate for the year 1879 is so large that it must be supposed to include a large sum for military works, the construction of new lines for transportation or other permanent structures, or that it looks to a possible extension of the occupation to Novi-Bazar.

The government organs represent the total loss of the military forces up to the close of the lighting at only 5,000, including killed, wounded, and missing. The general opinion considerably increases that estimate. The number of the sick and of those dying from sickness is not published, and would probably largely swell the figures representing the total loss.

Although the ministry seems inclined to procrastinate, still withholding necessary papers from the delegations, yet the conviction is now entertained very generally that no action will be taken in either delegation which will disturb Count Andrassy’s tenure of office. It is believed that in all this Bosnian affair he has had the personal approval, if not the inspiration, of the Emperor. This goes far in Austria to check the aggressive movement of the partisans of parlimentary government. There remains the difficulty of a hostile house of representatives in Austria, on which an Austrian ministry depends.

It is hoped to solve this difficulty also after the delegations shall have decided their action.

I have, &c.,